To update legal citations and federal standards that are incorporated by reference in the rules.

 

DEPARTMENT OF FINANCIAL SERVICES

FSC - Financial Institution Regulation

RULE NOS.:RULE TITLES:

69U-110.021Notification to OFR after Elections or Appointments

69U-110.0211Liability and Bond Insurance

69U-110.026Supervisory/Audit Committee; Audit

69U-110.031Powers

69U-110.062Capitalization Criteria for Conservatorship or Involuntary Liquidation Actions

69U-110.063Credit Unions Liquidation Certificate and Maintenance of Records

PURPOSE AND EFFECT: To update legal citations and federal standards that are incorporated by reference in the rules.

SUMMARY: The proposed rule amendments update legal citations and the federal standards that are cited and incorporated by reference in five rules. Specifically, the amendments replace: the 2006 versions of 12 C.F.R. §§ 741.6, 741.202, 701.37, and 12 C.F.R. Part 702 with the 2020 versions; the 2018 versions of 12 C.F.R. §§ 741.3(d) and 741.201(a) with the 2020 versions; and the 2006 version of 12 U.S.C. § 1790d(c) with the 2018 version. For clarity, the amendments also delete references to the National Credit Union Act (“Act”) and National Credit Union Administration (“NCUA”) Rules that duplicate the references to the codified versions of the Act and NCUA Rules. The amendments also update a citation to state law in Rule 69U-110.063, F.A.C., pertaining to the maintenance and retention of books and records following voluntary or involuntary liquidation. The amendment deletes the citation to section 657.055, F.S., which was repealed in 2005, and replaces it with a citation to the current equivalent provision – section 655.91, F.S. Finally, Rule 69U-110.021, F.A.C., is updated to include the agency’s mailing and email addresses for filings.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency completed the SERC analysis and checklist for each proposed rule to determine the need for a SERC. Based on this information at the time of the analysis and pursuant to section 120.541, F.S., the rules will not require legislative ratification.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 655.012(2), 657.026(3)(a), 657.028(6), 657.062(1)(c), 657.063(1) FS.

LAW IMPLEMENTED: 655.045, 655.057, 655.061, 657.021, 657.026, 657.028(6), 657.031, 657.033(9), 657.042, 657.062, 657.063, 657.064 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Leslie Bryson, Assistant General Counsel, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69U-110.021 Notification to OFR after Elections or Appointments.

(1) No change.

(2) Within thirty (30) days after election or appointment, a record of the names and addresses of the members of the board, members of committees, and all officers of the credit union shall be filed with the office. This filing may be satisfied by providing the office with a copy of reports filed with the National Credit Union Administration per 12 C.F.R. §741.6 (1-1-2020 Edition 2006), which is incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX and the OFR’s website, www.flofr.com.

(3) Filings required by this rule shall be submitted to OFR by mail or email as follows:

Division of Financial Institutions

Office of Financial Regulation

200 East Gaines Street

Tallahassee, Florida 32399-0371

[e-mail]

Rulemaking Authority 655.012(2), 657.028(6) FS. Law Implemented 657.021, 657.028(6) FS. History–New 7-24-66. Formerly 3-5.07, Amended 10-21-75, Formerly 3D-10.08, Amended 10-13-81, Formerly 3C-30.08, 3C-30.008, Amended 10-8-95, Formerly 3C-110.021, Amended 3-6-07, 7-27-15,          .

 

69U-110.0211 Liability and Bond Insurance.

The credit union shall maintain officer and director liability insurance and blanket bond insurance in such amounts and terms as required to maintain insurance of accounts by the National Credit Union Share Insurance Fund, as provided in National Credit Union Administration Rules 741.3(d) and 741.201(a) (codified at 12 C.F.R. §§741.3(d) and 741.201(a) (1-1-2020 Edition), 741.201(a), respectively (2018)), which are hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX09663 and the OFR’s website, www.flofr.com. The liability and bond insurance shall provide, at a minimum, coverage for errors, omissions, negligence, fraud, and dishonesty by all employees, directors, officers, supervisory or audit committee members, and credit committee members. The credit union shall also maintain applicable insurance coverage with respect to all operations and activities.

Rulemaking Authority 655.012(2) FS. Law Implemented 657.021 FS. History–New 10-13-81, Formerly 3C-30.33, 3C-30.033, Amended 10-8-95, Formerly 3C-110.0211, Amended 3-6-07, 9-11-18,         .

 

69U-110.026 Supervisory/Audit Committee; Audit.

(1) No change.

(2) The supervisory or audit committee of each state chartered credit union shall perform, or cause to be performed, an annual audit of the credit union in each calendar year and within 15 months of the previous audit. The complete audit, including all summaries, reports, drafts, work papers, and similar documents, shall be made available upon request to the OFR for examination, copying, and review at the credit union’s principal place of business. The annual audit shall be performed in such a manner as to ensure the maintenance of account insurance as required by section 657.033(9), F.S., as provided in 12 C.F.R. §741.202 (1-1-2020 Edition), National Credit Union Administration Rule 741.202 (codified at 12 C.F.R. §741.202 (2006)), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX and the OFR’s website, www.flofr.com.

(3) through (4) No change.

Rulemaking Authority 655.012(2), 657.026(3)(a) FS. Law Implemented 655.045, 657.026, 657.033(9) FS. History–New 7-25-66, Formerly 3-5.08, Amended 10-21-75, Formerly 3D-10.10, Amended 10-13-81, Formerly 3C-30.10, 3C-30.010, Amended 10-8-95, Formerly 3C-110.026, Amended 3-6-07,         .

 

69U-110.031 Powers.

(1) No change.

(2) General Powers Activities. Credit unions are authorized to engage in those general powers activities to provide financial services and benefits to their members without prior approval of the OFR, unless such approval is otherwise specifically required by law or is necessary to achieve competitive equality per section 655.061, F.S. The following general power activity is so authorized for competitive equality:

Credit unions may serve as a United States Treasury Department tax and loan depository, a depository of Federal taxes, and a financial agent of the United States Government, in accordance with 12 C.F.R. §701.37 (1-1-2020 Edition), NCUA Rule 701.37 (codified at 12 C.F.R. §701.37 (2006)), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX and the OFR’s website, www.flofr.com.

(3) No change.

Rulemaking Authority 655.012(2) FS. Law Implemented 655.061, 657.031, 657.042 FS. History–New 3-6-07, Amended 9-11-18,          .

 

69U-110.062 Capitalization Criteria for Conservatorship or Involuntary Liquidation Actions.

The office may take action to have a credit union placed into a conservatorship or involuntary liquidation upon finding that, among other reasons, the credit union is significantly undercapitalized or undercapitalized, and has no reasonable prospect of becoming adequately capitalized. The criteria for such determination of capitalization shall be as defined in the net worth categories contained in 12 U.S.C. §1790d(c) (2018), http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX, and s. 216, the Federal Credit Union Act, codified at 12 U.S.C.A. 1790d(c) (Thomson/West 2006) (current through P.L. 109-382) (excluding P.L. 109-304, P.L 109-364), and the regulations promulgated thereunder in 12 C.F.R. Part 702 (1-1-2020 Edition 2006), http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX, which are incorporated by reference. This material is also available on the OFR’s website, www.flofr.com.

Rulemaking Authority 655.012(2), 657.062(1)(c), 657.063(1) FS. Law Implemented 657.062, 657.063 FS. History–New 3-6-07, Amended          .

 

69U-110.063 Credit Unions Liquidation Certificate and Maintenance of Records.

(1) through (2) No change.

(3) The custodian shall maintain such books and records in a safe and reasonable manner and as prescribed by section 655.91, 657.055, F.S. Such books and records shall not be destroyed without the prior written approval of OFR. OFR reserves the right to demand delivery of such books and records at any time.

Rulemaking Authority 655.012(2) FS. Law Implemented 655.057, 657.062, 657.063, 657.064 FS. History–New 11-7-84, Formerly 3C-30.39, Amended 1-25-87, Formerly 3C-30.039, Amended 10-8-95, Formerly 3C-110.063, Amended 3-6-07,          .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Jeremy W. Smith

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 9, 2021

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 9, 2021